3.1 explain the elements of a valid business contract
A legal contract formally obligates two or more parties to perform certain acts based on the terms and conditions negotiated by the parties. Several elements must be met in order for a contract to be legally enforceable. These elements include offer, acceptance and the exchange of consideration. Savvy business owners know creating a business contract saves potential hassle down the road if misunderstandings about the scope of work or the payment schedule arise. A solid contract that includes the seven basic elements means you decrease the chances of financial or emotional problems while also establishing a reputation as a credible company.